RESURRECTION BAY AUTO PARTS, INC. and DILLIP MULLINGS, Appellants,
DENNIS ALDER, Appellee
Appeal from the Superior Court of the State of Alaska, Third Judicial District, Anchorage, Eric A. Aarseth, Judge. Superior Court No. 3AN-11-07991 CI.
Joe P. Josephson, Josephson Law Offices, LLC, Anchorage, for Appellants.
Dani Crosby and Eva R. Gardner, Ashburn & Mason, P.C., Anchorage, for Appellee.
MAASSEN, Justice. Before: Fabe, Chief Justice, Winfree, Stowers, Maassen, and Bolger, Justices.
This case arises from a dispute over whether the manager of an auto-parts store was owed overtime pay. The employer claims the manager was exempt from the overtime laws, but the superior court found he was not and awarded overtime pay and liquidated damages. The employer appeals.
Because the employer failed to show that the manager satisfied all four requirements of the overtime laws' exemption for executive employees, we affirm the finding that the manager is owed overtime pay under Alaska and federal law. We also affirm the superior court's award of liquidated damages, because the employer failed to carry his burden of demonstrating by clear and convincing evidence that he acted in good faith.
II. FACTS AND PROCEEDINGS
Dillip Mullings owned a NAPA auto-parts store in Seward called Resurrection Bay Auto Parts, Inc. Mullings hired Dennis Alder to be the store manager, a position Alder held from 2006 to 2010, when he was terminated. Alder did not keep a time card, but it is undisputed that he typically worked from 6:30 a.m. to 6:30 p.m. Monday through Friday. The extent of Alder's overtime is not at issue on appeal; Mullings concedes that Alder worked over 40 hours a week. It is also undisputed that Alder was paid a salary and did not receive overtime pay.
After Alder was terminated, he sought unemployment compensation from the State Department of Labor. The Department's Wage and Hour office determined that Alder was entitled to overtime pay and attempted, without success, to negotiate a settlement on his behalf with Resurrection Bay.
Alder then filed suit, alleging that Mullings and Resurrection Bay (collectively " Mullings" ) had violated state and federal overtime laws. Mullings responded that Alder was an ...